Density Bonus policy has been revised to be more in sync with
state guidelines
Gilroy – A policy that encourages affordable housing development has grown more lavish in its rewards and less strict in its requirements since last updated to match state law, according to Gilroy Housing Planner Regina Brisco.
Brisco, who joined the city about a year ago, could not say how long the city’s Density Bonus policy has been out of sync with state guidelines. But she said a revised policy, which planning commissioners will review tonight, would remain current with the aid of general references to state requirements.
Under the out-dated policy, developers can obtain density bonuses – or permission to build more units than allowed on a piece of land – by making 10 percent of the units affordable to very low-income families. They can also qualify for bonuses by pricing 20 percent of units within reach of low-income families. Either option allows developers to boost profit margins by increasing overall project size by 25 percent.
For example, a 100-unit project could increase to 125 homes, as long as 10 units were priced within reach of a four-person family earning $54,000 a year. Under new state guidelines, developers can earn the same bonus while pricing just five homes within reach of such very low-income families. Or, they can build just 10 homes within reach of similarly-sized families earning less than $85,000 annually (considered low-income families in Santa Clara County).
Unlike Gilroy’s current policy, state rules reward developers for exceeding minimum requirements by offering a density bonus of up to 35 percent. In projects that include a child care facility, the state allows developers to build extra residential space equal to the size of the child care center.
Commissioners will review the policy at 6pm tonight during a public meeting in City Hall, 7351 Rosanna Street.
Serdar Tumgoren, Senior Staff Writer, covers City Hall for The Dispatch. Reach him at 847-7109 or st*******@************ch.com.
